【正文】 unior/nonmajority partner arrangement ? Investment to build a presence in anticipation of longer term success ? Confirm there is a market and there is budget to spend ? Strength of local supply chain ? Ensure pliance of International Traffic in Arms Regulations (ITAR), which controls the export and import of defense related products and services on the US Munitions List (USML). Going forward, acquisitions and cross border joint ventures in the global Aamp。D sector are expected to gain further attractiveness as global defense spending returns to growth and foreign investments norms are being relaxed in emerging markets. What has been the trend for US Aamp。D sector exports? Figure 9 illustrates the increase in US gross exports of Aamp。D sector products from 2022 to 2022. Although exports have experienced growth over this period, there has been a slight dip in the magnitude of growth in US Aamp。D exports recently, mainly due to the countervailing forces of a strong US dollar, petition from the global marketplace, especially Russia and China as well as the inability of the ExportImport bank board to authorize transactions above US$10 million, due to a lack of a voting quorum. Recently, in December, 2022, the US Congress 36 declined to permit a waiver for the Export Import Bank to approve higher value transactions. There is still some ambiguity about the fate of the bank as the new US administration has yet to take a decision on its plete Figure 9: US aerospace and defense sector gross exports in US$ billion (2022 to 2022) Gross exports % change Sources: Deloitte analysis of data from the . Census Bureau, accessed in November 2022, 。 and UN Comtrade | International Trade Statistics Database, accessed in November 2022, $ $ $ $ $ $ % % % % % % % % % % % $ $ $ $ $ $ $ $ $ 2022 2022 2022 2022 2022 2022 9 Global aerospace and defense sector outlook This is likely to create some uncertainty with respect to US Aamp。D exports in 2022. However, given the expected increase in mercial aircraft sales and production volumes as well as growth in military products and weapons systems, contribution of US Aamp。D exports will continue to remain significant in the global Aamp。D marketplace. There is a likelihood of the market being crowded as petitors from China, Russia and later Japan and India emerge, leading to a slight decline in western countries’ share of exports. Is the US Aamp。D sector still more efficient than rest of the world? The global Aamp。D sector’ s productivity remains high, stabilizing in growth after a period of improvement, which was largely due to increased process automation and efficiency initiatives, and lower overhead costs brought about from economies of scale gain through mergers and acquisition activity. Efficiency, defined as operating earnings per employee among global Aamp。D panies decreased marginally by percent to US$34,276 in 2022 pared to US$34,523 in Efficiency levels continue to differ between the US and Europe. While the US recorded operating earnings per employee at US$41,218 in 2022, it was much lower for rest of the world at US$23,364 and US$28,521 for US panies have experienced more recent success in improving employee productivity pared to panies in Europe and Asia due to its greater flexibility to rationalize/close factories, adjust employee levels, and manage cost structures in a timely manner. Figure 10 shows the gap between US productivity and the rest of the world, where US headquartered panies recorded a percent average annual growth rate improvement in operating earnings per employee from 2022 to 2022 (estimates), over the percent improvement for the rest of the world during the same The average operating margin for US panies in 2022 was percent, while European panies reported average operating margins of Efficiency initiatives by mercial aerospace panies, especially the larger panies, include increased concentration of their supplier base, risk sharing with suppliers, and factory automation have led to improved productivity levels amongst other initiatives. Also, a decrease in overhead costs experienced as a result of higher merger and acquisition activity, also contributed to higher productivity, all similar to the broader sector. Continued productivity improvement in engineering and manufacturing operations is a key element allowing flexibility in pricing products. Customers—whether airlines or government defense procurement officials—continue to expect more for less: more functionality, more reliability, less cost for maintenance, lower acquisition prices, and better, more petitive products. The global Aamp。D sector is expected to continue to experience pricing pressure and a resulting need to be more efficient and to reduce costs in 2022. $0 $50,000 $45,000 $40,000 $35,000 $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 2022 2022 2022 2022 2022 2022 2022E Global Aamp。D operating profit per employee (US$) US Aamp。D operating profit per employee (US$) Figure 10: Global, US, and rest of the world operating earnings per employee in US$ (2022 to 2022E) Rest of world Aamp。D operating profit per employee (US$) Source: Deloitte analysis of aerospace and defense annual reports for 2022, 2022, 2022, 2022, 2022, 2022 and quarterly reports for 2022 and information from DTTL39。s annual Global Aamp。D sector financial performance study for the years 2022, 2022, 2022, 2022, 2022, and 2022. Figure 11: Global Aamp。D sector onetime charges in US$ billion (2022 to 2022F) Source: Deloitte analysis of aerospace and defense annual reports for 2022, 2022, 2022, 2022, 2022, 2022 and quarterly reports for 2022 and informati